Question

Exercise 9-7 a-b Presented here are selected transactions for Cullumber Limited for 2018. Cullumber uses straight-line depreciation and records adjusting entries annually. Jan. 1 Sept. 1 Sold a delivery truck for $19,430 cash. The truck cost $63,480 when it was purchased on January 1, 2015, and was depreciated based on a four-year useful life with a $5,460 residual value. Sold computers that were purchased on January 1, 2016. They cost $11,061 and had a useful life of three years with no residual value. The computers were sold for $460 cash. Retired equipment that was purchased on January 1, 2009. The equipment cost $163,600 and had a useful life of 10 years with no residual value. No proceeds were received. Dec. 30 * Your answer is incorrect. Try again. Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit LLLLLLLLLLLLLLLLLLLLLLLLLLLL Jan. 1 Cash 194301 LLLLLLLL Accumulated Depreciation - Vehicles 63,480 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII LLLLLLLLLL L L Loss on Disposal Vehicles 63480

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Jan. 1	Accumulated Depreciation - Vehicles	$     43,515		(63,480 - 5,460) / 4 X 3
	Cash	$     19,430
	Loss on Disposal	$           535
	Vehicles		$     63,480
Sept. 1	Depreciation Expense	$       2,458		11,061 / 36 X 8
	Accumulated Depreciation - Computers		$       2,458
	Accumulated Depreciation - Computers	$       9,832
	Cash	$           460
	Loss on Disposal	$           769
	Computers		$     11,061
Dec. 30	Depreciation Expense	$     16,360
	Accumulated Depreciation - Equipment		$     16,360
	Accumulated Depreciation - Equipment	$   163,600
	Equipment		$   163,600

In case number of days are considered in the last transaction

Dec. 30	Depreciation Expense	$     16,315
	Accumulated Depreciation - Equipment		$     16,315
	Accumulated Depreciation - Equipment	$   163,555
	Loss on Retirement	$             45
	Equipment		$   163,600